The Principle of Maturity Matching Suggests That

question 94

Multiple Choice

The principle of maturity matching suggests that

• A) machinery with a 5 year economic life be financed with debt that will be paid off in five years or less.
• B) seasonal peaks in inventory be financed with traded credit.
• C) the minimum level of current assets required for the firm's year around operations be financed with permanent sources.
• D) all of the above.

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Definitions:

American Law Institute Test

A standard used to determine criminal liability in insanity defense cases, assessing if the defendant lacked the ability to understand the wrongfulness of their actions due to mental illness.

Durham Test

A test used to detect the production of gas by microorganisms in sugar fermentation processes.

M'Naghten Rule

A legal principle that defines the insanity defense by assessing if a defendant was unable to understand the nature of their actions or distinguish right from wrong at the time of the crime.

Irresistible Impulse Test

A legal test for insanity that assesses if a defendant was unable to control his or her actions due to a mental illness.